Why Lucid Group Inc. (LCID) Went Up Last Week?

We recently published a list of Last Week’s 10 Best-Performing Stocks. In this article, we are going to take a look at where Lucid Group Inc. (NASDAQ:LCID) stands against other last week’s best-performing stocks.

Ten firms outperformed Wall Street’s three major indices over the past week, clocking in double-digit gains on the back of a flurry of company developments that sparked buying appetite.

On a week-on-week basis, the Dow Jones rallied by 1.19 percent, the S&P 500 increased 0.5 percent, and the tech-heavy Nasdaq inched up 0.16 percent.

Meanwhile, 10 firms finished stronger with gains of 10 to 20 percent. In this article, let’s explore the names of last week’s best performers and the reasons behind their rallies.

To come up with the list, we only considered the stocks with at least a $2 billion market capitalization and $5 million in trading volume.

An engineer examining an electric vehicle design in a lab, showing the company’s innovative battery systems.

Lucid Group Inc. (NASDAQ:LCID)

Shares of Lucid Group surged by 15.79 percent week-on-week to close at $2.42 on Friday from the $2.09 registered on March 14.

The rally was primarily buoyed by Morgan Stanley’s “underweight” rating, an upgrade from the “equal weight” rating previously.

It also gave the company a new price target of $3, or a 23.97-percent upside from its last closing price.

According to Morgan Stanley, it believes that LCID has the opportunity to execute an AI strategy leveraging strategic partnerships with the context of urgency to develop onshore manufacturing capacity for Battery Electric Vehicles as the socket for the AI brain.

“While [LCID] can continue to license out their industry-leading drivetrain technology to legacy OEMs, we see the real value in potential partnerships with AI/ADAS players for advancing autonomy in a software-defined EV socket,” Jonas added.

Overall, LCID ranks 4th on our list of last week’s best-performing stocks. While we acknowledge the potential of LCID as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as LCID but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.